W Corp, a regular C corporation, is 100% liquidated, pursuant to a plan of liquidation.  Shareholder Mary's basis in W stock is $40,000.  Her shareholdings are pretty small. Mary, who is a MARRIED individual, gets cash of $10,000; PLUS tangible property with a FMV of $80,000, which subject to a $20,000 mortgage. 

Upon liquidation, Will Mary recognize a gain? If yes, the how much?

Answer rating: 100% (QA)

In a corporate liquidation the shareholder generally recognizes gain or loss on the distribution of ... View the full answer